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Int'l Business Times
15-05-2025
- Business
- Int'l Business Times
CFPB Scraps Biden-Era Plan To Curb Data Brokers' Sale Of Personal Info
The U.S. Consumer Financial Protection Bureau (CFPB) is officially withdrawing a proposed rule introduced under former President Joe Biden that would have significantly curtailed the sale of Americans' personal information by data brokers, according to a notice published Wednesday in the Federal Register. Unveiled in December, the rule sought to classify data brokers as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), reported Reuters. Data brokers selling financial records would have been required to meet FCRA standards, meaning data could only be sold for legitimate reasons such as loan underwriting, while ensuring accuracy and transparency. The reclassification would have subjected them to more stringent requirements regarding transparency, accuracy, and permissible use of personal data. Advocacy group Consumer Reports pointed out data brokers collect sensitive personal information—including credit card purchases, web activity, health and genetic data, military status, religion, and financial records—and use AI tools to create consumer profiles. These profiles are often sold to companies without individuals' knowledge and can influence pricing, eligibility, and other key decisions affecting people's lives. Russell Vought, the CFPB's acting director, explained that the decision reflects a change in the agency's policy direction and interpretation of the FCRA. He stated the proposed rule was ""not necessary or appropriate at this time," referencing broader updates to Bureau policies, The Hill reported. "Further, commenters raised numerous concerns related to this proposed rule that the Bureau believes require careful consideration before proceeding with a final rule," Vought said. Concerns Over Ignoring National Security And Privacy Criticizing the decision, former CFPB Director Rohit Chopra emphasized that the proposed rule was necessary, citing risks to national security, increased surveillance, and potential criminal exploitation associated with data broker practices. He warned that the rollback could even endanger government officials by compromising their personal privacy. Consumer Reports warned the withdrawal leaves Americans more susceptible to fraud and identity theft. Matt Schwartz, policy analyst at Consumer Reports, said the decision increases the risk of sensitive information—such as Social Security numbers—falling into the hands of criminals. "This decision is just the latest troubling move by this administration to abandon the CFPB's critical mission to protect consumers," Schwartz said. Tumult Inside CFPB Vought also rescinded nearly 70 policy statements, advisory opinions, interpretive rules, and guidance documents issued by the agency since its inception in 2011. The scrapping of the data broker rule follows President Donald Trump's recent signing of congressional resolutions rolling back two Biden-era CFPB rules. The rules had extended consumer protections to digital payment technologies, including cryptocurrency. Vought's leadership has coincided with dramatic internal shifts at the CFPB. He has halted many ongoing initiatives, closed the agency's headquarters, and attempted to carry out sweeping layoffs. Last month, the Bureau moved to eliminate about 90% of its workforce, but a court intervened to temporarily block the cuts.
The Star
15-05-2025
- Business
- The Star
Trump administration scraps Biden-era plan to limit sale of Americans' personal data
The seal of the Consumer Financial Protection Bureau (CFPB) is seen at their headquarters in Washington, D.C., U.S., May 14, 2021. REUTERS/Andrew Kelly/File Photo (Reuters) -The U.S. Consumer Financial Protection Bureau is scrapping a proposal issued under former President Joe Biden that would have sharply limited the sale of Americans' private information by "data brokers," according to a Federal Register notice issued Wednesday. The agency also yanked proposals that sought to extend consumer protections to the use of new digital payment technologies including cryptocurrency, and that would have prohibited certain terms in the fine print in consumer finance products. In a statement, Consumer Reports said the withdrawal of the data broker proposal would leave consumers "vulnerable to scams and identity theft." President Donald Trump's administration has moved this year to decimate the CFPB, initially seeking to shut it down entirely and subsequently saying it can meet its legal obligations with about 10% of its current staff. Efforts to fire large amounts of staff are currently on hold as federal courts consider the matter. Senior officials in recent days have continued undoing much of the prior administration's work in regulation and oversight. The agency last week withdrew scores of guidance documents issued across administrations since 2011. In proposing the limits on data brokers in January, former CFPB Director Rohit Chopra said the sale of Americans' private information to data brokers was a "staggering" problem that also jeopardized national security by putting government officials' privacy at risk. The CFPB did not immediately respond to a request for comment. However, in a Federal Register notice, Russell Vought, the current acting CFPB director, said the proposal no longer aligned with the bureau's changed policy objectives and its interpretation of the Fair Credit Reporting Act. "Further, commenters raised numerous concerns related to this proposed rule that the Bureau believes require careful consideration before proceeding with a final rule," he said. These included whether the proposal was at odds with federal law. (Reporting by Douglas Gillison in Washington; Editing by David Gregorio)
Straits Times
14-05-2025
- Business
- Straits Times
Trump administration scraps Biden-era plan to limit sale of Americans' personal data
US President Donald Trump's administration has moved this year to decimate the US Consumer Financial Protection Bureau. PHOTO: AFP WASHINGTON - The US Consumer Financial Protection Bureau (CFPB) is scrapping a proposal issued under former President Joe Biden that would have sharply limited the sale of Americans' private information by 'data brokers', according to a Federal Register notice issued on May 14 . The agency also yanked proposals that sought to extend consumer protections to the use of new digital payment technologies including cryptocurrency, and that would have prohibited certain terms in the fine print in consumer finance products. In a statement, Consumer Reports said the withdrawal of the data broker proposal would leave consumers 'vulnerable to scams and identity theft'. President Donald Trump's administration has moved this year to decimate the CFPB, initially seeking to shut it down entirely and subsequently saying it can meet its legal obligations with about 10 per cent of its current staff. Efforts to fire large amounts of staff are currently on hold as federal courts consider the matter. Senior officials in recent days have continued undoing much of the prior administration's work in regulation and oversight. The agency last week withdrew scores of guidance documents issued across administrations since 2011. In proposing the limits on data brokers in January, former CFPB Director Rohit Chopra said the sale of Americans' private information to data brokers was a 'staggering' problem that also jeopardised national security by putting government officials' privacy at risk. The CFPB did not immediately respond to a request for comment. However, in a Federal Register notice, Mr Russell Vought, the current acting CFPB director, said the proposal no longer aligned with the bureau's changed policy objectives and its interpretation of the Fair Credit Reporting Act. 'Further, commenters raised numerous concerns related to this proposed rule that the Bureau believes require careful consideration before proceeding with a final rule,' he said. These included whether the proposal was at odds with federal law. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
14-05-2025
- Business
- Yahoo
CFPB withdraws proposed rule cracking down on data brokers
The Consumer Financial Protection Bureau (CFPB) is withdrawing a Biden-era proposal that sought to rein in the sale of Americans' personal information by data brokers. In a federal register notice filed Wednesday morning, acting CFPB Director Russell Vought said the agency had determined the rule was 'not necessary or appropriate at this time,' pointing to 'updates to Bureau policies.' The rule, proposed in December, sought to treat data brokers as consumer reporting agencies under the Fair Credit Reporting Act (FCRA), subjecting them to additional requirements. Former CFPB Director Rohit Chopra argued the rulemaking was necessary to address national security, surveillance and criminal exploitation risks associated with data broker practices. However, Vought said the rule was 'not aligned with Bureau's current interpretation of the FCRA, which it is in the process of revising, and its changed policy objectives.' Watchdog groups slammed the move by the administration, arguing it leaves consumers more vulnerable. 'Data brokers collect a treasure trove of sensitive information about virtually every American and sell that information widely, including to scammers looking to rip off consumers,' Matt Schwartz, a policy analyst at Consumer Reports, said in a statement. 'Dropping these proposed limits will leave consumers unprotected and make it more likely that sensitive information like their Social Security numbers will wind up in the hands of crooks,' he continued. 'This decision is just the latest troubling move by this administration to abandon the CFPB's critical mission to protect consumers.' The data broker proposal is the latest rulemaking at the agency to be walked back in recent days. Vought on Friday withdrew nearly 70 policy statements, interpretive rules, advisory opinions and guidance issued by the consumer watchdog since its creation in 2011. President Trump also signed congressional rollbacks of two Biden-era CFPB rules last week that sought to cap overdraft fees and ramp up oversight of digital wallets and payment apps. The CFPB has been in a state of turmoil under Vought's leadership, as the acting director has halted work, closed the agency's headquarters and attempted to conduct mass layoffs. The Trump administration has been accused of attempting to effectively dismantle the agency by the National Treasury Employees Union, which has sued to block officials' recent efforts. After the agency moved to lay off about 90 percent of employees last month, the courts stepped in and blocked the cuts from going forward. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Reuters
14-05-2025
- Business
- Reuters
Trump administration scraps Biden-era plan to limit sale of Americans' personal data
May 14 (Reuters) - The U.S. Consumer Financial Protection Bureau is scrapping a proposal issued under former President Joe Biden that would have sharply limited the sale of Americans' private information by "data brokers," according to a Federal Register notice issued Wednesday. The agency also yanked proposals that sought to extend consumer protections to the use of new digital payment technologies including cryptocurrency, and that would have prohibited certain terms in the fine print in consumer finance products. In a statement, Consumer Reports said the withdrawal of the data broker proposal would leave consumers "vulnerable to scams and identity theft." President Donald Trump's administration has moved this year to decimate the CFPB, initially seeking to shut it down entirely and subsequently saying it can meet its legal obligations with about 10% of its current staff. Efforts to fire large amounts of staff are currently on hold as federal courts consider the matter. Senior officials in recent days have continued undoing much of the prior administration's work in regulation and oversight. The agency last week withdrew scores of guidance documents issued across administrations since 2011. In proposing the limits on data brokers in January, former CFPB Director Rohit Chopra said the sale of Americans' private information to data brokers was a "staggering" problem that also jeopardized national security by putting government officials' privacy at risk. The CFPB did not immediately respond to a request for comment. However, in a Federal Register notice, Russell Vought, the current acting CFPB director, said the proposal no longer aligned with the bureau's changed policy objectives and its interpretation of the Fair Credit Reporting Act. "Further, commenters raised numerous concerns related to this proposed rule that the Bureau believes require careful consideration before proceeding with a final rule," he said. These included whether the proposal was at odds with federal law.
